Financial Solutions – Business Finance Global LLC

Trade Finance

Trade finance represents the financial products and instruments used by importers and exporters to facilitate international trade. It makes it possible and easier for them to conduct business through trade.

Some of the products available for importers and exporters include invoice factoring, buyer’s credit financing, pre-shipment financing, post-shipment financing, storage financing, working capital, and more. You can refer to the Resources section for more information and read about the different types of financial solutions, including requirements, provided by the respective lenders.

1. Pre-Shipment Finance
This includes any finance that an exporter can access before sending goods to an importer.

2. Post-Shipment Finance
This refers to any type of finance that an exporter can use after sending goods to a buyer. If needed, a lender can accelerate payment to the exporter so that the payment is received when the goods are shipped.

3. Import Finance
This is a specialized trade finance solution used to finance the purchase of goods that are exported from one country to another for trade purposes.

4. Storage Finance
This type of finance is for raw materials stored in a client or third-party warehouse that are not yet ready for production, or for finished goods that are not yet ready for shipment.

5. Receivable Finance/Discounting
This is financing against goods shipped to an offtake/buyer through the handling of original shipping documents, with repayment through an acceptable repayment source. The lender secures the arrangement by assigning the receivables and receiving payment directly. We may or may not charge a fee when an applicant receives funding. Refer to our Terms of Service for conditions under when an applicant is charged or not.

Investor Finance for Technology-based Ideas or Products

Investor financing works by providing capital to a business in exchange for a portion of ownership in the company, meaning the investor does not need to be repaid directly but instead shares in the profits (or losses) the business generates, essentially becoming a part-owner rather than a lender. This allows businesses to raise funds without incurring debt but also means they relinquish some control to the investor. The stages of investor financing typically include Pre-seed, Seed, Series A, Series B, Series C, and beyond, with each stage representing a different level of company development and requiring different types of investors, with the earlier stages usually involving small investments from angel investors, accelerators, and incubators, and later stages attracting large investments from venture capital firms as the company scales up.

The Role of Accelerators and Incubators in Startup Investing

While both accelerators and incubators support startups, the key difference is that incubators focus on nurturing early-stage startups by providing foundational support like business development and market research, while accelerators aim to rapidly scale more developed startups through intensive mentorship, funding and networking opportunities, often in exchange for equity; essentially, incubators help build the base of the company, while accelerators push for rapid growth and market penetration.

Breakdown of the stages

Pre-Seed

Is the very first stage where a startup is validating their idea, conducting market research, and developing a basic prototype, often funded by founders themselves or close friends and family. Accelerators can fund this stage, from $25,000 to $120,000 per company, taking around 6%in equity return.

Seed

Is the initial round of funding where a company starts to build their products, acquire early customers , and establish a core team, usually funded by angel investors. Amount of funding is $100,000 to $5 million and average is $2.2 million. Amount of funding depends on the startup goals and the founder’s willingness to give up equity.

Series A

A significant funding round where a company focuses on scaling operations, expanding market reach, and hiring a larger team, often with investments from venture capital firms. Amount of funding is $2 million to $15 million, depending on the startup’s growth rate and industry.

Series B

Further expansion of the company’s operations, potentially entering new markets or developing new products, with continued investment from venture capitalists. Amount of funding is $10 million to $30 million, depending on the startup growth rate and industry.

Series C and beyond

Later stages of funding for mature companies looking to consolidate their market position or pursue large acquisition, potentially involving private equity firms. Amount of investment is $30 million to hundreds of millions. This amount depends on the company’s valuation, business potential, proven scalability and growth, market conditions, industry and sector, and the company’s future funding expectations.

Why Venture Capitalists Are Attracted to Africa

From Bpifrance article of February 20, 2024: African Tech: A Land of Opportunity for Venture Capitalists.

“The African venture market was born out of the need to support the emergence of technological innovations that meet local needs in healthcare, financial inclusion, and agri-food sovereignty. In 10 years, $20 billion has been invested on the continent, 68% of it in the last 3 years. While 2023 saw a general slowdown in startup funding worldwide, from which the African countries were not spared, growing economies, technology penetration, and an increasingly seasoned talent pool make Africa a strategic terrain for investors over the long term.”

Read more

International Grants for African and U.S Businesses

Sources of grants for African countries are provided by some foreign governments , private foundations and others. Beneficiaries of funds include corporations, small businesses, non-profit organizations, but rarely to individuals .Funds are channelled to different sectors such as NGO, education, research, agriculture, healthcare, energy, women empowerment, poverty alleviations and other causes.. Grant providers include United States government agencies such as United States African Development Foundation (USADF), United Nations, Climate Investment Fund (CIF), Foundations and many more.

To qualify for a grant, you typically need to complete an application and submit comprehensive business plan outlining a well-defined project that aligns with the grantmaker’s funding priorities, including a clear need statement, measurable goals, detailed budget, project timeline,qualified staff information, and a demonstration of how your project will achieve impactful results within the grant guidelines: essentially providing the value and feasibility of your proposed initiative.

We require a nominal fee for this service. Please go to our Methods of Payment page to find out the details.

Buyer's Credit Finance

Buyer’s credit is a short-term loan facility extended to an importer by an overseas lender, such as a bank or financial institution, to finance the purchase of capital goods, services, and, in some cases, consumable goods. The importer, to whom the loan is issued, is the buyer of the goods, while the exporter is the seller.

Buyer’s credit is a valuable financing method in international trade as it gives importers access to cheaper funds compared to what may be available locally. At the same time, it helps promote the sale of the exporter’s goods, which may not have been possible if the importer couldn’t access this financing. It’s a win-win situation for both the buyer and seller.

It should be noted that not all countries offer buyer’s credit to foreign buyers. However, if you are importing or planning to import capital equipment from the U.S., you may benefit from this type of financing. You also have the option of purchasing such equipment locally in your own country or leasing it, on the condition that the equipment is manufactured and shipped from the U.S, or, the machinery or equipment is manufactured in the buyer’s country by a manufacturer whose parent company is located in the seller’s country but operates in another country outside of the parent company. For example, a U.S. manufacturing company operating in a foreign country where the buyer is located. The same applies in other cases, such as a Japanese manufacturer operating in South Africa, where the buyer is located and from where the product is being purchased or leased.

Industrial machinery and equipment, such as agricultural, mining and quarrying, oil and gas, building construction, highway construction, and many more,that are manufactured by U.S companies such as Caterpillar, John Deere, AGCO, operating outside the U.S.,can offer loan or lease financing for qualified buyers who purchase or lease the product in his or her country where these companies are operating from. Likewise,Japanese companies like Komatsu, Hitachi Construction Machinery, or a Swedish company, like Volvo Construction Equipment,can also offer financing to qualified buyers in South Africa and some other parts of Africa.

Similarly, if you are purchasing capital equipment and services or, in some cases, consumer goods from countries like Germany, Sweden, Turkey, Italy, Saudi Arabia, or China and need financing, you may be able to qualify for buyer’s credit financing. We charge a fee when an applicant receives funding.

Small Business Loans Offered By Our Lending Partners

Eligible small businesses located and doing business in the United States can apply for a small business loan from traditional lenders,to start a new business, grow an existing business, refinance an existing business debt, purchase a business, including online business, working capital or for any other eligible business-related purposes.The amount of loans can vary from $10,000 to $5 million, depending on the lender. Types of loans include SBA 7(a) loans, Term loans, Lines of credit, Working capital and Equipment finance.

Minimum time in business required, in most cases is 1-2 years; very few lenders will require less or no time in business at all. A FICO score of 650+ is required in most cases but some lenders will consider less than 650,and few others will have no FICO score limit. However, if your FICO score is low and therefore, put you in a category “bad credit”, you may still be able to get a loan but will pay a higher interest rate than applicants with good or excellent FICO score.

Annual revenue requirement varies between lenders and can range from $150,000 to $500,000. A handful of lenders don’t set a limit. If you are looking for a small business loan, select any one of our lending partners to begin your pre-application process. If your credit score is low, you have no revenue or no time in business, and you are requesting between $1K and $500K, select Southend Capital from our list of lenders. This lender is more favorable to small businesses , particularly startups that fall into this category.

We do not charge for this service. Our lending partners pay us for any application that we submitted that was successfully funded. .

To begin your pre-application process, select any of our lending partners that are listed below

Buy and Sell Your Online Business on Flippa Marketplace

While the reasons why people sell their businesses vary from retirement, health issues, financial necessities

and so on. Most people that buy businesses online do so to earn extra income or create passive income.

A passive income is money earned regularly from a source that doesn’t require active participation, such

as an employee or contractor. There are several marketplaces online where buyers and sellers can conduct

their transactions but not all marketplaces are the same.

Flippa is not only the #1 and original platform to buy and sell online business but also the biggest and most

reachable platform to sell your online business. With well over 1.5 million active users Flippa attracts around

5,500 new users each month who constantly engage with the site, browsing for new listings and starting

meaningful discussions between buyers and sellers. Flippa’s platform is straightforward and user-friendly.

Also, it lets a seller negotiate with a potential buyer and it’s an affordable platform.

Do you have a business to sell or buy?

Browse the Flipa platform

Real Estate Investment Loans Offered by Hard Money Lenders

A hard money loan

A hard money loan is a short-term loan primarily used by real estate investors, like house flippers, to quickly finance the purchase of a property that they plan to renovate and resell rapidly, often relying heavily on the property’s value as collateral rather than the borrower’s credit history, allowing for faster approval and funding compared to traditional mortgages.
They typically charge high interest rates and fees due to the higher risk involved for the lender. Other real estate investors use the loan to purchase rental property to generate long-term residual income. Self-employed individuals also use hard money loans because, like the real investors, they are generally not qualified for loans provided by traditional lenders.

Pros of Hard Money

Speed to close the loan – Typically around a week
Much less required documentation to get a loan
Less regulation allows for different qualifications to get a loan approved – The lender sets the qualification terms not the government.

Cons of Hard Money

Expensive – Because a private lender is generally using their own money, they determine the interest rate which can vary a lot.
Less regulations also allows the lender to set their own terms for the repayment of the loan.

Typical Requirements to Get a Hard Money Loan

To get a hard money loan, you typically need:

A purchase contract for the property
A substantial down payment or equity in the property to use as collateral
Proof of income; although some lenders offer a No income verification loan
A property appraisal
While not always required, a minimum credit score (usually around 550) is often considered; the most important factor for the lender is the value of the collateral property, not necessarily your credit score.

Methods of Payment

For Grant Seekers from Africa and The United States

Primary payment method is PayPal. If you don’t have a PayPal account, you can sign up for a free account, using the link provided. Payment in the amount of $75 is required prior to sending the detailed information about grant providers. If PayPal service is not available in your country, you can use Western Union.

Recipient’s PayPal account: Business Finance Global LLC, New Jersey, United States
Email: contactoqbfs@gmail.com, Phone: +1 856-398-9778
Senders using Western Union – Use receiver’s name and choose Cash Pick Up option.

For Comparative Analysis of Hard Money Lenders Service

PayPal: Send a payment in the amount of $50 to the PayPal account of Business Finance Global LLC, USA.
Email: Contactoqbfs@gmail.com. Phone: 1 (856) 398-9778.